New regulations affect coal shipments
There is some confusion following the new regulatory measures from both Indonesia as well as China with respect to what can be exported and imported as of 1 January 2015. While the rigour of the enforcement of the changes in Indonesia seems unclear at this time, correspondents in China confirm that it is fully expected that the new regulations will be given full effect.
The Skuld P&I Club has issued on its website loss prevention advice on what to check as follows:
”Operators it will be important to check:
- is the cargo being supplied by a properly licensed mining entity (be it in Indonesia or elsewhere)
- does the cargo come with a valid export license, not just valid at the time it is issued but valid for the time of the proposed shipment
- what are the importing country’s cargo specifications (particularly in China) with respect to ash and sulphur content as well as its calorific value
- is the cargo destined for use in any of the cities / regions affected by the most stringent requirements in China
- will the cargo consigned to China be used within 600 km of the port in which it is discharged
- if the cargo will be used further than 600 km from the Chinese discharge port, does it meet the requirements for such types of cargoes”
The club suggests that these are perharps more detailed questions than owners, charterers and traders are familiar with asking or considering when fixing a vessel to lift coal to China, but given the pending regulations, it will be prudent to consider the same in advance of concluding any fixture.
Source: The Skuld P&I Club
